Germany’s Inflation Surges Unexpectedly in December 2024
Inflation in Germany rose unexpectedly by 2.6% in December 2024 compared to the previous year, marking the third consecutive monthly increase. While energy prices decreased, the costs of food and services rose. Economists predict that inflation will remain above 2% in 2025, influenced by higher CO2 pricing and increased demands for wages in the service sector. This inflation trend could affect monetary policy decisions by the European Central Bank, which has already reduced interest rates multiple times in 2024.